The amount owed to energy suppliers by customers has reached a new record high of £4.79bn, regulator Ofgem has disclosed. The total debt and arrears across England, Wales and Scotland rose by 15% in a year, with the latest figures covering January to the end of March. Customers who have been in debt for more than three months are included in the data.
For those without a repayment plan, the average arrears hit £1,876 for electricity and £1,623 for gas – more than double the amount owed by those who have a repayment agreement. The numbers come ahead of a further rise in energy prices due in July, driven by increasing gas costs, which will affect millions of households.
“Energy debt in Britain has hit a record £4.79bn, up 15% in a year, as July price rise looms.”
While many billpayers may feel they have already cut back as much as possible, experts say there are still options to reduce bills. Suppliers may write off some debt, offer payment plans, or help with the cost of white goods such as fridges and washing machines – but only if customers inform them of their difficulty. Households can check what their supplier offers through various support measures.
About 22 million people – roughly 40% of billpayers – are on fixed tariffs, where the cost per unit remains unchanged for the term, usually a year. These deals are currently cheaper than the price cap level, though if international events cause prices to fall sharply, the savings may be less clear.
Ofgem also warns that receiving bills quarterly rather than paying by monthly direct debit costs about £140 a year more. There are still around seven million so-called standard credit accounts.
Experts recommend using the current heatwave to prepare homes for winter: blocking draughts, changing cooking habits, bleeding radiators, and being more energy efficient. Even shortening shower times can help – using egg timers or four-minute songs to keep time.
Millions of pounds in benefits go unclaimed. Pension credit in particular is underclaimed, and it can open the door to other financial support. Grants for energy efficiency improvements may be available through local council schemes, with eligibility varying by income and location. Charities such as Citizens Advice can help people see if they qualify.